Target Corp

The stock market's recent bounce has a lot of folks looking for a piece of the action. And with retail stocks shooting up faster than average, but still cheaper than a year ago, some analysts say now's the time to buy them. They're wrong. Here's why:

J.C. Penney's new CEO plans to remake the tired old department store chain a la the Apple Store and Target, and his fresh ideas are earning him applause. But as investors and industry watchers cheer Ron Johnson's turnaround concepts, they're ignoring some big potholes on the road ahead.

New CEO Ron Johnson's plan to revamp J.C. Penney is seriously ambitious. No more coupons, almost no more sales, and a complete rethink of the department store model. So why does he think he can pull it off -- and with a chain that has lagged its rivals? Because maybe he can. Here's why:

Target may be planning to add something that's chic but certainly not cheap to some of its stores. Sources say Apple will open small stores within 25 of Target's largest stores later this year. But you may be surprised about which ones.

Many retailers are reporting solid sales gains for December, capping a decent holiday season, but shoppers bent on discounts exacted a high price.

On Tuesday, Sears Holdings announced it would close as many as 120 Sears and Kmart stores after a holiday sales season in which it fell flat on its face. What Sears really needs is a new image -- an idea that will lure shoppers back. Could "Made in the USA" be it?

Shares of Sears Holdings fell 27% Tuesday on news that the retailer would close as many as 120 poorly performing Sears and Kmart stores -- an unusually harsh response to a cost-cutting measure. Clearly, investors are concerned that the problems run much deeper -- and they're right to worry.